General Motors Co Net Income surged on 145% in 2015 while Revenue decreased on 2.3%
03.02.2016 • About General Motors Co (
$GMM.U) • By InTwits
General Motors Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 8.5% in 2015, 5.6% in 2014, 8.5% in 2013, -14.1% in 2012, 8.7% in 2011
- General Motors Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 4.7%.
- The company has potentially unprofitable business model: ROIC is at 5.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
General Motors Co ($GMM.U) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 150,276 | 152,256 | 155,427 | 155,929 | 152,356 | -2.3% |
| Gross Profit | 19,890 | 12,020 | 20,502 | 17,847 | 24,035 | 34.7% |
| SG&A | 12,105 | 13,593 | 12,382 | 12,158 | 13,405 | 10.3% |
| EBITDA | 13,083 | -21,498 | 13,172 | 8,768 | 12,914 | 47.3% |
| Net Income | 9,190 | 6,188 | 5,346 | 3,949 | 9,687 | 145.3% |
Balance Sheet
|
|---|
| Cash | 16,071 | 18,422 | 20,021 | 18,954 | 15,238 | -19.6% |
| Short Term Debt | 5,800 | 5,518 | 14,158 | 14,944 | 19,562 | 30.9% |
| Long Term Debt | 8,033 | 10,532 | 22,025 | 31,721 | 43,549 | 37.3% |
Cash flow
|
|---|
| Capex | 6,249 | 8,068 | 7,565 | 7,091 | 7,874 | 11.0% |
Ratios
|
|---|
| Revenue growth | 10.8% | 1.3% | 2.1% | 0.3% | -2.3% | |
| EBITDA growth | 8.7% | -264.3% | -161.3% | -33.4% | 47.3% | |
| Gross Margin | 13.2% | 7.9% | 13.2% | 11.4% | 15.8% | 4.3% |
| EBITDA Margin | 8.7% | -14.1% | 8.5% | 5.6% | 8.5% | 2.9% |
| Net Income Margin | 6.1% | 4.1% | 3.4% | 2.5% | 6.4% | 3.8% |
| SG&A, % of revenue | 8.1% | 8.9% | 8.0% | 7.8% | 8.8% | 1.0% |
| CAPEX, % of revenue | 4.2% | 5.3% | 4.9% | 4.5% | 5.2% | 0.6% |
| ROIC | 10.9% | -76.3% | 12.4% | 2.2% | 5.2% | 3.1% |
| ROE | 28.3% | 18.1% | 11.5% | 7.5% | 25.7% | 18.2% |
| Net Debt/EBITDA | -0.2x | | 1.2x | 3.2x | 3.7x | 0.5x |
Revenue and profitability
General Motors Co's Revenue decreased on 2.3% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.9 pp from 5.6% to 8.5% in 2015.
Gross Margin increased on 4.3 pp from 11.4% to 15.8% in 2015. SG&A as a % of Revenue increased slightly on 1.0 pp from 7.8% to 8.8% in 2015.
Net Income marign increased on 3.8 pp from 2.5% to 6.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.2% in 2015. General Motors Co showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 4.9%.Battling declining revenue General Motors Co invested a large share of EBITDA (61.0%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at good ROE (25.72%) while ROIC is low (5.24%). ROIC increased on 3.1 pp from 2.2% to 5.2% in 2015. ROE jumped on 18.2 pp from 7.5% to 25.7% in 2015.
Leverage (Debt)
Debt level is 3.7x Net Debt / EBITDA and 4.9x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 3.2x to 3.7x in 2015. Debt jumped on 35.2% in 2015 while cash dropped on 19.6% in 2015.
Management team
The company's CEO is Mary T Barra. Mary T Barra has 4 years tenure at the company. The company's CFO Charles K Stevens III "Chuck" has spent 6 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find General Motors Co benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 11.5% | 5.3% | 5.3% | 7.7% | 3.3% |
|---|
| General Motors Co ($GMM.U) | | 1.3% | 2.1% | 0.3% | -2.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 37.9% | 36.5% | 32.1% | 34.6% | 36.9% |
|---|
| General Motors Co ($GMM.U) | 13.2% | 7.9% | 13.2% | 11.4% | 15.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (65 companies) | 8.4% | 8.1% | 9.8% | 10.0% | 9.7% |
|---|
| General Motors Co ($GMM.U) | 8.7% | -14.1% | 8.5% | 5.6% | 8.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.7% | 2.2% | 2.7% |
|---|
| General Motors Co ($GMM.U) | 4.2% | 5.3% | 4.9% | 4.5% | 5.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.8% | 10.1% | 9.8% | 10.9% |
|---|
| General Motors Co ($GMM.U) | 10.9% | -76.3% | 12.4% | 2.2% | 5.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.3x | 1.8x | 1.9x | 0.5x |
|---|
| General Motors Co ($GMM.U) | -0.2x | | 1.2x | 3.2x | 3.7x |
